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09/02/2026

Nvidia Invests $3.5B in MediaTek, Deepening AI Chip Alliance

What happened: Nvidia is investing $3.

Nvidia Invests $3.5B in MediaTek, Deepening AI Chip Alliance

What happened: Nvidia is investing $3.5 billion in convertible bonds issued by MediaTek, accounting for nearly 90% of the Taiwanese chipmaker's record $3.9 billion bond raise. The deal will see MediaTek adopt Nvidia's NVLink Fusion and NVHBM technologies for custom AI accelerators, with joint development of RTX Spark and DGX Spark chips for AI PCs and workstations. MediaTek shares rose 10% on the news, and the company aims to capture $2 billion in AI chip revenue in 2026.

Why it matters: The investment marks Nvidia's largest direct outlay outside the US and strengthens its foothold in the global AI hardware ecosystem. Some analysts note the "circular financing" dynamic—Nvidia funds a partner that, in turn, integrates Nvidia's IP—echoing past scrutiny of Nvidia's relationships with OpenAI and CoreWeave. The alliance is also seen as a strategic hedge against hyperscalers developing in-house AI chips, positioning Nvidia and MediaTek to compete for a projected $80 billion AI accelerator market by 2027.

Source: Tom's Hardware, CNBC, TechCrunch